GBP/JPY Technical Analysis: 61.8% Fibonacci questions pullback from 200-week EMA

• GBP/JPY nosedives after failing to provide a clear break of 200-week EMA during the previous week.
• Sellers await the break of 61.8% Fibonacci retracement of 2018 top to 2019 bottom.
• Bullish MACD confronts nearly overbought RSI.

GBP/JPY plummets to 145.20, after making the intra-day low of 145.09, during the early Asian session on Tuesday.

The pair surged to a nine-month high after the United Kingdom’s (UK) ruling Conservatives won the general elections. Even so, the quote failed to register a weekly closing beyond 200-week Exponential Moving Average (EMA), now at 146.06.

While nearly overbought conditions of 14-bar Relative Strength Index (RSI) favors further pullback of the pair, bullish signals from 12-bar Moving Average Convergence and Divergence (MACD) indicates further strength of prices.

As a result, sellers are looking for entry below 61.8% Fibonacci retracement of the year 2018 year to 2019 trough, around 145.00, ahead of targeting March month low near 143.70.

On the contrary, a weekly closing beyond 146.06 level comprising a 200-week EMA could propel the pair’s run-up towards the yearly top nearing 148.90.

GBP/JPY weekly chart

Trend: Pullback expected